SYDNEY, March 26 Reuters The Australian and New Zealand dollars were ending the week deep underwater on Friday as the market gave up on the chance of early rate hikes and pulled bond yields sharply lower.
The Aussie was pinned at 0.7590, leaving it down 1.9 for the week and below chart support around 0.761520.
The next major support level was uncomfortably close at 0.7564, and a break would open the way to a retracement target at 0.7499 or even the 200day moving average at 0.7370.
The kiwi dollar idled at 0.6965, having shed 2.8 for the week in its worst performance in almost six months.
The slump swept away support at 0.7100 and 0.7005, as well as the 100day moving average at 0.7118. The next target for bears was the 200day moving average at 0.6869.
The kiwi has been floundering since New Zealand decided to cool a redhot housing market by ending tax breaks for property investors, a shift that forced speculators to sharply scale back wagers on an early hike in rates.
A huge rally in bonds saw yields on twoyear paper down 9 basis points for the week at 0.26, and back in line with the 0.25 cash rate.
Tenyear yields were off 17 basis points for the week at 1.683, having been as low as 1.545 at one stage.
Australian bonds followed with 10year yields down 13 basis points on the week at 1.677, a long way from the February top of 1.97.
A break under 1.65 could allow a further rally toward 1.42 and fill a chart gap left during Februarys sudden selloff.